Exciting changes are on the horizon for homebuyers! Starting in early 2025, Freddie Mac and Fannie Mae are making updates that could simplify the homebuying process for your clients. These changes aim to make purchasing a home faster, less expensive, and more accessible—especially for first-time buyers.

Here’s a closer look at what this change means and how it could benefit homebuyers:

What Is an Appraisal Waiver?

An appraisal waiver allows buyers to skip the traditional in-person home appraisal during the mortgage approval process. Instead, automated tools determine the home’s value based on recent sales and other market data.

Currently, appraisal waivers are available to buyers with an LTV ratio of 80% or lower. But starting in early 2025, this threshold will increase to 90%.

How Buyers Benefit from the New 90% LTV Ratio

1. Lower Down Payments, No In-Person Appraisals

With the increased LTV threshold, buyers can qualify for appraisal waivers with just 10% down. This means fewer hurdles for buyers who may not have a large down payment saved.

2. Faster Closings

Skipping the appraisal process can shave days—or even weeks—off the homebuying timeline. Automated underwriting ensures buyers can move into their new homes more quickly.

3. Cost Savings

By avoiding the in-person appraisal, buyers could save $500 or more in fees. This money could be used for other expenses, like moving costs or furnishing their new home.

4. Reliable and Safe Process

Even without a physical appraisal, lenders will rely on accurate data like credit scores and recent comparable sales to ensure the waiver process is thorough and safe for buyers.

Why This Change Is a Win for Buyers

The new appraisal waiver guidelines address some of the most common challenges buyers face, especially first-time homebuyers. Lower upfront costs and streamlined closings make it easier for more people to achieve their dream of homeownership.

If you’re planning to buy a home in 2025, this update could make the process smoother and more affordable.

Get Prepared for 2025

As these changes roll out, staying informed will help you make the most of this opportunity. Have questions about appraisal waivers or how they could impact your buying experience? Greenway Mortgage is here to help. Let’s discuss how this new policy can benefit you. Give us a call 888-616-9885 or email us at leads@greenwaylending.com.